Andy Bailey of Bleacher Report released his contract extension predictions for next season, where he had Daniels signing a four-year, $155 million contract. While this seems absurd at first glance, particularly considering Jalen Johnson just signed a five-year, $150 million deal last offseason, the proposed deal isn’t the overpay it appears to be.
The fourth-year player crushed even the highest expectations set by his biggest believers. Daniels set a new benchmark for elite perimeter defense across the league after averaging 3 steals per game for the first time across the NBA since 1991. He earned second place in the Defensive Player of the Year voting and was named to the First Team All-Defense, becoming the fourth-youngest player to receive the latter honor.
On the offensive side, Daniels proved he belonged on the floor. His per-36 minute scoring increased by over 50%, and his three point percentage made a critical leap from 31.1% to 34.0%. Now that he has proven he is the perfect backcourt companion for Trae Young (and, frankly, for most teams), Daniels will be getting paid.
Daniels’ projected salary is not as bad as it seems
When evaluating this contract, there are two major points to consider: Is Daniels worth the money, and does paying him hamstring the Hawks' future?
Daniels is indeed worth this money. For reference, consider two extensions for players with comparable careers: Jabari Smith Jr. and Jalen Suggs. Smith Jr., who received a five-year $122 million extension this offseason, has clearly been worse than Daniels over his NBA career. Suggs has also been worse, but received $150.5 million over the same five years. Given the fact that Daniels is the best of these three, there is no reason he deserves less.
The second question is trickier to answer. Assuming Trae Young takes his player option (which he will not, but it gives a realistic salary to work with), then Daniels’ $31 million would leave the Hawks with $167 million allocated for next season. This is $2 million above the salary cap and $42 million below the first apron.
The salary cap is not a critical issue for the Hawks, who primarily addressed their free agency needs this year. What is critical is the first apron, as the team will have a hard time acquiring new talent over the apron. Daniels’ salary leaves enough room to re-sign Kristaps Porzingis and acquire a player via trade.
While $31 million annually is a steep price tag, Daniels has proven he is worth the money, and the effects of this deal will not limit Atlanta’s future. The reality is that this extension could prove to be a steal if Daniels becomes the perennial DPOY candidate he appears to be.